Engage More, Collect More

We’ve heard it time and time again…patients are shouldering a significant portion of their healthcare costs and hospitals are struggling to address this shift in reimbursement. The source of poor cash flow may not be due to an inability to pay, however, but rather an inability to pay the way we choose to.

A recent study published by McKinsey Quarterly shows that while 74 percent of insured consumers are willing and able to pay out-of-pocket medical expenses totaling less than $1,000 a year, many fail to make such payments due to a lack of financing options or utter confusion over complex medical billing processes. As a result, provider collection rates hover between 50 to 70 percent for small dollar liabilities due from insured patients and plummet to just 10 percent for self-pay patients.

But collecting revenue doesn’t have to be a complicated venture. Effectively engaging patients and boosting collections can be as straightforward as re-evaluating traditional payment processes and embracing a simple, yet proven strategy: thinking more like a consumer.

As high-deductible, consumer-directed health plans become the industry norm, patient expectations are changing rapidly. Whether checking in for flights or paying for groceries, today’s time-starved consumers have access to a myriad of self-service options and desire the same amenities when managing routine health-related transactions.

Patient-facing technologies such as kiosks, portals and mobile applications all present an opportunity to enhance patient engagement and increase revenue. According to a recent Harris Interactive poll, 36 percent of Americans are currently able to pay outstanding medical bills and/or co-payments online, using a mobile device, or at a self-service kiosk, and of those who can’t, 34 percent would like to have this capability.

For Illinois-based Elmhurst Memorial Healthcare’s Elmhurst Clinic, self-service has had a major impact on both patient satisfaction and cash flow. After implementing 17 kiosks enterprise-wide, the organization was able to consistently engage patients at check-in, request co-pays and expedite the registration process. By doing so, Elmhurst Clinic increased its time-of-service collection rate to 97 percent, reduced statement mailing costs and limited refunds by not collecting co-pays for visits that do not require one.

The kiosks also allow Elmhurst Clinic to capture forms electronically and import them into the EHR system, eliminating the need for time-consuming data entry and giving staff members more time to devote to patient questions and concerns.

Meanwhile, patients appreciate the speed and convenience self-service offers. Having more control over their own demographic and insurance information not only fosters a greater sense of empowerment for patients, but it also improves the integrity of data captured during registration and prevents potential billing and payment issues down the road.

Beyond check-in, self-service enables providers to deliver a more personalized and meaningful patient experience at various stages throughout the care process, from pre-registering for appointments online to enrolling in payment plans at a check-out kiosk to paying bills with a mobile device. These more frequent and consistent interactions work together to strengthen patient relationships, drive consumer preference and build loyalty.

With medical bad debt on the rise and patients shouldering greater financial responsibility for care, it’s never been more critical for healthcare providers to re-examine the way they collect payment. Traditional approaches that bill a patient’s portion of fees long after services have been rendered no longer serve the needs of patients or providers. By adopting self-service, hospitals and clinics can better address the dynamics of this new consumer-driven landscape and extend the reach of their organizations to patients at home, at work or on the go, resulting in additional opportunities to collect revenue and maintain a healthier bottom line.

Jeff Kao is vice president and general manager of NCR Healthcare.